Pakistan's economy is again under strain, as the ongoing crisis in West Asia has exposed how vulnerable it is to global happenings. The limited fuel supplies from the Middle East, amid the ongoing fragile ceasefire between the US and Iran, and stalled talks have tripled the oil bills of the country.
According to a report by Dawn, Pakistan Prime Minister Shehbaz Sharif is quoted as saying, "Our weekly pre-war oil bill was around $300m, and today it is up to $800m."
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The spike in Pakistan's oil bill is being attributed to disruption in global fuel supplies, especially via the Strait of Hormuz. This increase also highlights how much Pakistan relies on imported fuel.
The tripling of oil costs in such a short period of time has increased the strain on public resources, especially for a country like Pakistan, which is already struggling with debt, while experts say that further subsidies will only risk straining government resources.
Sharif added that the ongoing crisis has affected the efforts of economic revival and undone the progress achieved during the last two years of his tenure.
"With the war, our efforts of two years have witnessed a setback," Sharif said.
While the Pakistani government insists that foreign reserves stay steady, it remains reliant on financial assistance from outside. Sharif cited that the aid from its allies, like Saudi Arabia and the United Arab Emirates, included a $3.45 billion deposit repayment.
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With rising costs back home, Islamabad has been stumbling to increase diplomatic outreach and calling for a de-escalation between Washington and Tehran.
As per reports, Sharif has mentioned initiatives his government is taking to promote stability by sending high-ranking officials, including his Deputy Prime Minister Ishaq Dar and Army Chief Asim Munir, for meetings with the Iranian and US leaders.
Sharif further mentioned discussions with Iranian Foreign Minister Abbas Araqchi and their continued efforts to prolong and sustain the ceasefire that US President Donald Trump had declared.
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